2006-11-30 14:12:24In Wodehouse′s Footprints. Yesterday evening, I passed Berkeley Square - where Bertie Wooster lives in the novels - on my way to the Drones (!) restaurant. And it was situated opposite a shop called Jeeves. Wodehouse IRL. Fun, fun.

2006-11-29 19:11:55The City. A few hours ago, I landed in a unusually sunny London. Below a picture of the city centre and the financial districts, to the right a glimpse of the Millennium Dome. The latest edition of The Economist reports of worries at Wall Street for losing market shares in the financial markets - to emerging economies. But also to London. The Empire strikes back...? Basically, it is a clear case of state intervention or free markets. The financial markets in London City were successfully de-regulated during Thatcher. But Wall Street is still trapped in red tape. So old Britain gets back.

2006-11-25 16:18:42Friedman. I mentioned that I would get back with more comments about Milton Friedman and his ideologic and economic legacy. Now, numerous very good obituaries have been written, that might be studied. In fact, I think the best compilation of links to articles about Friedman has been made by the Adriatic Institute for Public Policy, in Croatia. Here, one can use the links to get to the texts.

2006-11-23 14:08:26What Dutch Government? Here in The Netherlands, the media is of course occupied with the results of yesterday′s elections. It seems to become very hard to form a new government. From my perspective, it is good that the reformist Prime Minister Jan Peter Balkenende beat the less reformist Labour Party. But on the other hand, the extreme left and right gained, while the most free-market party lost. In some way, there has to be one of those grand coalitions to have a majority. And that is not positive for reform prospects; the direction will be unclear. The trend from Germany, Italy and Austria is spreading. As in those countries, it remains to be seen if they will make the whole term or not.

2006-11-23 14:04:04View on Globalisation and Reforms. I just delivered a keynote address at a major symposium by ING Investment Management. It is the world′s 12th largest financial institution. I provided a global outlook as well as showed the case for reform in Europe and pointed to what direction reform should have.

2006-11-22 13:07:24Total Tax Rate - And Hours of Tax Bureaucracy. Corporate tax is just one of many taxes paid by companies. Other taxes include, for example, payroll taxes, VAT and property tax. Now, PricewaterhouseCoopers and the World Bank have calculated the total tax burden on companies in 175 different countries. "Paying taxes - the global picture" can be read here (pdf). They have also analysed how many hours it takes annually for companies to actually deal with all the bureaucracy surrounding the payment of all the taxes. The differences are great indeed - from 68 hours in Switzerland to 602 hours in Spain. Below a diagram from The Economist that shows both the total tax rate and the hours of bureaucracy.

2006-11-19 21:14:05Debate at Trinity College. Ireland is fantastic. Hospitable, beautiful, historic, yet young and dynamic. Anyway, I was scheduled to speak Thursday evening at The University Philosophical Society at Trinity College. Chairman of the meeting was Dr Garret Fitzgerald, former Irish Prime Minister, an impressive reformer now 84 years old and still going strong. The two other speakers were Maurice Hayes, Senator, and Denis O′Leary, former Deputy Secretary-General of the EU Commission.

A leading member of the Society, Trevor Bream Browne, a student, presented a paper about why he believed that European integration has gone too far. Then, we each did our speeches. My message was that integration of governments and policicians has gone too far, but integration of people, cultures and companies has not gone far enough. We need a Union of liberation, that tears down borders in order to increase free integration, not a Union of regulation that attempts to introduce a failed big government model all over Europe.

A fascinating place. Over 100 people present, and they were allowed to interrupt with questions or protests. A real, classic, debating society. We don′t have that tradition in Sweden, which we should have. The views were many, the arguments very different and it was all very intense and in a good mood. But the paper was, eventually, voted down with a broad margin.

2006-11-19 21:08:51Ireland - Turkey of Yesterday? Should we allow a country to be EU member, where women′s rights are not respected, where the grip of religion is strong and which is very poor? Well, we did, actually, in 1973, when Ireland joined the EEC. Someone reminded me that these are the main issues discussed about Turkey and the EU today. A somewhat drastic comparison, perhaps, but interesting and relevant. It shows how the EU membership - and the path to it - will enhance openness and modernity - and economic progress.

2006-11-19 21:05:26Debate on Irish Radio. Saturday morning, I came to Newstalk - a radio station in Ireland - believing that I would be interviewed for fifteen minutes about my book, Europe and reforms. It turned out to be a debate with the former Irish Minister of Labour, Joan Burton. A very nice and telling discussion about what the state should do, the free market, Ireland and Sweden, though. One can listen here.

2006-11-19 20:54:35Casino Royal. Apparently, Ségolène Royal won the primaries to be the candidate for President from the Socialist Party in France. Clearly, there is a strong desire for something new and unconventional, yet electable, in French politics. In terms of ideology and policy, many have said that she has been a moderniser who has abandoned traditional leftist ideas. Well, I have noticed th opposite too, for example when she said that capitalists (owners of companies) should be "frightened" and in her views about globalisation. I guess the next few months will reveal more, but I think few know more than I do for now. And that is not too much. This nomination is, in its uncertainty on policy, a bit of a gambling.

2006-11-19 20:51:57Mr Manka Invited. Now, a formal invitation to a debate with me has been sent to Vladimir Manka, the Member of the European Parliament from Slovakia (Socialist) who was upset about an interview with me and who contacted all the Swedish MEP:s. Read the invitation here. And here are the articles in Trend in English, main article and interview with me.

2006-11-18 11:03:39Milton Friedman. I got the news that Milton Friedman had passed away, after my speech at a great arrangement at Trinity College in Dublin. Milton Friedman has indeed been a very important source of inspiration for me throughout the years. He was of course a brilliant economist, but most of all a man of principles, standing up for freedom. I will get back with more about his impressive and important heritage - and about the Ireland that has been so successful in recent years, thanks to following his ideas.

2006-11-18 10:59:18In European Voice: The True Nature of the So-Called Social Europe. This week, European Voice published a piece by me about the failure to reach a compromise about the EU working-time directive. I believe it reveals the true nature of the calls for a "Social Europe" - all about restrictions to freedom and attempts to introduce big government on a European scale; a model that has failed in every country where it has been tested.

2006-11-15 10:24:32Stirring the European Parliament. A Member of the European Parliament, Vladimir Manka, a Socialist from Slovakia, did not appreciate my message in Bratislava. Clearly, he belongs to those who want to introduce a so-called social model of big government in Slovakia and wants to use the Nordic countries as an argument for that.

My activities in Bratislava, including the large interview in Trend, Slovakia′s version of The Economist, seem to have made his task difficult. There, I argue that other countries might learn from the free-market reforms of the Nordic countries, but should avoid their big government. Thus, Mr Manka has now translated the Trend articles and sent to all the Swedish Members of the European Parliament. He claims to be "shocked" and asks whether Timbro is a reliable source of information and if I am a respected analyst in Sweden.

I will let others be the judge of that. One could perhaps, in all modesty, wish that the facts and arguments that I put forth should be judged by their own merit and not by who is the messenger. But this is where the fun continues. The non-Socialist Swedish MEP:s seem to confirm the credibility of the messenger, whereas the Socialist ones do quite the opposite.

Somehow the assessment of credibility seems to follow whether you agree with the message or not. Another way to determine which arguments are the strongest is a public debate - which I would be happy to have with Mr Manka at any time. To be continued, I hope...

2006-11-14 15:48:13Speech at Trinity College. After Friedrich Engels, Bono, Winston Churchill, Desmond Tutu and Salman Rushdie. But before Al Pacino, who speaks on the 22nd of November. I am referring to the fact that on Thursday evening, I will speak at Trinity College in Dublin. Host is The University Philosophical Society, a classic debating arena, with past members like Oscar Wilde, Bram Stoker, Jonathan Swift and Mary Robinson. Quite a name-dropping. But they are impressive people. My topic is European integration. Will be lots of fun.

2006-11-14 12:05:45So That′s Where My Interest in Astronomy Comes From...? I just received very interesting results from a person who apparently has been engaged in extensive genealogical research into the family Munkhammar. Apart from known facts, such as the origin of the name coming from the leading blacksmith at the iron factory in Munkfors, there was a surprising piece of information. The second man on the moon, Edwin "Buzz" Aldrin is - way back - a relative of mine. I couldn′t attempt to describe how, though, but I suppose that due to the massive migration from Sweden to the US once, many Swedes have relatives there.

2006-11-13 13:38:06Sarkozy for President! I have had my doubts about Nicolas Sakozy, what ideas he really has about the future. But now, there is good reason for support. In a recent speech, he pointed out that globalisation creates "unprecedented possibilities", that France should do a number of free-market reforms and break with the past - and that the state should protect without protectionism. Hear, hear!

2006-11-13 09:51:56The Failures of the Stern Report. The former Chief Economist of the OECD, David Henderson, has presented a critique of the British Stern Report on climate change. That very report has ignited a situation in the public debate where virtually everyone talk about the coming disaster and how to save us all. David Henderson points to serious errors in this reasearch, in terms of method, which clearly show that it is flawed, partly unfounded and biased. Well worth reading before running our and shouting that the end is nigh...

2006-11-09 13:51:15Don′t Touch My Working Time! The Ministers for Labour Market in the EU failed to reach a compromise on the working-time directive the other day. This means that the current regulation will be a reality from January, which will have serious adverse consequences. For example, the "on call"-time that doctors and nurses sometimes have, is counted as working time. Thus, expenses for health care will suddenly have to rise because more staff will have to be hired. The main ingredient in the directive is a limit on working time in the EU at 48 hours per week.

This is both a matter of what issues the EU should deal with and - if the EU should deal with them - what the EU should do. If the EU should be a Union of liberation and not regulation, it follows that this is not an issue for the EU but for member countries. Then, there will be institutional competition between countries about what policies that work the best. But if the EU should engage in the matter, it should certainly not impose mroe regulation and more limits on people′s freedom. Which it does in this case.

I think it is an unacceptable limit on people′s freedom if the government forces people to work a maximum of 48 hours a week. If I want to work 88 hours a week, why on earth should the government prohibit that? But all right, if a national government wants to limit people′s freedom and indeed decrease national competitiveness - it is up to them. But now France tries to force such limits on everyone else - such as Britain. And worst of all: they do it for internal political reasons.

This all shows the advantages of an EU à la carte, where you can pick which parts you want to have. Countries that don′t want part of damaging regulations shoudl be able in general to opt out. And with a union of soon 27 and after that probably more members, the EU is very heterogeneous. Then, the direction of the Union is likely to become towards a core of single market and then more free choice for countries about what areas of co-operation they want to engage in.

2006-11-08 11:21:09Åslund in FT About Central Europe. In today′s Financial Times, Anders Åslund points out that the main problems for the countries of Central Europe are not political, but economic:

"But central Europe′s economic results are impressive only by European Union standards. From 2000 to 2005, Poland, the Czech Republic, Slovakia and Hungary grew on average by 4 per cent a year, compared with 8 per cent a year in the 15 former Soviet republics. Even in this boom year, central Europe will grow by 5 per cent, while the former Soviet Union comes close to 9 per cent. Star performers are Armenia, Azerbaijan and Kazakhstan. ...

Two-thirds of the much higher growth in the former Soviet countries can be explained by their far lower public expenditures. The only other significant factor is the high world prices for oil. The ex-Soviet countries have become part of the high-growth belt from China via India to the Baltics and they look to the economic models of east Asia, with low taxes, limited social transfers and free labour markets, rather than the EU."

2006-11-08 09:15:40Implications of the Democrat Victory. Despite efforts from John Kerry, the Democrats won the House, as predicted, though the Senate remains uncertain. It is more of a loss for the Republicans than a real victory for the Democrats.

The common explanations for the discontent are the situation in Iraq - which has not been handled the way it should - and the scandals. Personally, I think one should not underestimate the importance of the criticism against the Republicans from their own people about abandoning policies for small government. The expansion of the federal government with George W Bush has been criticised as a betrayal of core conservative values. This is likely to have discuraged many Republicans from voting.

What will happen? Well, normally in a system of checks and balances like the US federation, this is a situation which leads to less government intervention in society. Spending increases have historically been smaller when there have been different majorities. This is simply due to the fact that it is harder for the politicians to agree.

In this case, however, it might, at least initially, have the opposite effects. First, the tax decreases by George W Bush - foolishly made temporary from the start - will probably not be prolonged. Second, there will be no social security reform that will avoid a spending increase for pensions. Third, if anything, there will be more restrictions on foreign trade.

2006-11-07 15:01:43Europeans Support Flexible Labour Market. In the latest Europe-wide opinion poll Eurobarometer, 72 per cent of the respondents agree with the following statement: "Work contracts should become more flexible to encourage job creation." So please, no more excuses from the politicians about people standing in the way of reform. Loud minorities, perhaps, but not people in general.

2006-11-07 14:29:39Does the EU Commission Support Ms Royal? Ségolène Royal, the Socialist candidate for French President, has said that she wants more of a "social Europe". A model that has failed miserably and created very anti-social effects on the national level is, for some reason, desired on a European scale. According to Le Figaro, the Swedish EU Commissioner Margot Wallström supports Ms Royal in her EU vision. Indeed, Sweden then has a Commissioner in conflict with the Swedish Government. But perhaps she is just preparing to leave Brussels and become a leader of the Social Democrat Party? In any case, the new Swedish government ought to begin to consider new names for the post as EU Commissioner.

2006-11-07 12:55:18In Trend: ?védsky sociálny model má antisociálne efekty. This week, the main topic - in several articles - in the Slovakian version of The Economist, Trend, is the so-called social model, the Nordic countries and Sweden. It features an extensive interview with me. Read the first article here and the interview with me here.

2006-11-06 12:05:38Justice - But Wrong Punishment. At last, justice has arrived to Saddam Hussein by the decision from the court. Among several bad signs from Iraq, this is a good one, since it is the rule of law. Unfortunately, they decided on the death penalty. I think that this punishment is wrong in principle and should not be allowed in democratic states. In this case, in particular, I think it would have been a better signal if he had been sentence to life imprisonment. It would have been the opposite of his own rule of death and a sign of a new and humane society.

2006-11-03 12:00:43Happy Halloween! Just let me wish you a horrifying halloween. For fans of old horror films like me, this is fun times. If you want to see a classic and not get too scared, I would suggest Christopher Lee′s first Dracula film from 1958. Enjoy!

2006-11-03 11:50:27Back From Oslo. The conference where I spoke yesterday took place in the fortress Oscarsborg, which is situated on an island outside of Oslo. It was built to protect the entrance to the Norwegian capital. And indeed it was given that task decades after it was built, when Nazi Germany was about to invade on April 9th 1940. A fleet of cruisers and smaller ships entered during the night with no lights on, but were spotted. The head of the old fortress managed to mobilise some people and load the cannons. (From Swedish Bofors, by the way.) The cruiser Blücher was sank - and the German staff that had the task of capturing the King and Government sank with it. Thus, the Norwegian Government got the time to escape. This is 66 years ago. The world - and Europe - is indeed so much better today in many ways.

2006-11-01 12:34:33Falling, One By One... It seems that the ghost of labour mobility restrictions is haunting Europe. In 2004, only Britain, Ireland and Sweden did not have any such arrangements to stop the free movement of labour in the enlarged EU. Now, both Britain and Ireland will introduce measures against people from Bulgaria and Romania when they join the EU in January. And among the others, several countries discussed abolishing the previous regulations - but now it seems they will also have restrictions on the newest members. For example, The Netherlands seems to go that way. And Spain too. But Sweden, with a new government, will not have any restrictions. The previous Social Democratic government wanted it, but did not manage to get a majority in Parliament. This government has said that will not propose anything similar - I sure hope that position is steadfast. Hopefully, then, more people will come to work in Sweden this time than in 2004, when only some 2000 people came.